Trade Setup for Wednesday: Top 15 things to know before Opening Bell

Shabbir Kayyumi of Narnolia Financial Advisors said any decisive move above the psychological level of 11,000 will push the index towards 11,118.

Sunil Shankar Matkar

Led by gains in auto and banking stocks, benchmark indices on March 5 ended over 1 percent higher.

The 30-share BSE Sensex surged 378.73 points to end at 36,442.54 while Nifty50 ended 124 points higher at 10,987.50.

"The Nifty index closed above 200 DMA & all short term moving averages. It has managed to sustain above 61.8 percent retracement levels of the previous swing which is placed around 10,915 levels indicating prices can extend further towards the recent high of 11,118 levels," Shabbir Kayyumi, Head - Technical and Derivative Research at Narnolia Financial Advisors, told Moneycontrol.

He expects markets to trade higher unless it breaches 10,915 decisively on the lower side. Any decisive move above the psychological level of 11,000 will push the index higher towards 11,118 levels, he said.

He said sustained trade above 200-DMA (10,860) will resume the up move taking the index higher towards immediate resistance zone of 10,980-11,000.

Moreover, a close below the strong support (10,640) will push prices lower towards 10,550, he added.

The broader markets continued to hogged the limelight with the Midcap and Smallcap indices rallying 2.4 percent and 4 percent respectively, following strong breadth.

"The market breadth has improved on the back of the market participants sensing the possibility of the incumbent government retaining power, which naturally provides policy stability," Devang Mehta, Head – Equity Advisory at Centrum Wealth Management said.

All sectoral indices closed in the green, barring IT, which fell over a percent.

We have collated top 15 data points to help you spot profitable trades:

Key support and resistance level for Nifty

The Nifty closed at 10,987.45 on March 5. According to Pivot charts, the key support level is placed at 10,871.37, followed by 10,755.23. If the index starts moving upward, key resistance levels to watch out are 11,049.27 and 11,111.03.

Nifty Bank

The Nifty Bank index closed at 27,554.05, up 510.15 points on March 5. The important Pivot level, which will act as crucial support for the index, is placed at 27,147.87, followed by 26,741.63. On the upside, key resistance levels are placed at 27,770.57, followed by 27,987.04.

Call options data

Maximum Call open interest (OI) of 20.58 lakh contracts was seen at the 11,500 strike price. This will act as a crucial resistance level for the March series.

This was followed by the 11,000 strike price, which now holds 18.12 lakh contracts in open interest, and 11,200, which has accumulated 14.56 lakh contracts in open interest.

Significant Call writing was seen at the strike price of 11,500, which added 5.34 lakh contracts, followed by 11,100 strike, which added 3.46 lakh contracts and 11,300 strike that added 2.79 lakh contracts.

Call unwinding was seen at the strike price of 10,900 that shed 1.10 lakh contracts, followed by 11,000 strike that shed 0.70 lakh contracts.

Put options data

Maximum Put open interest of 22.40 lakh contracts was seen at the 10,600 strike price. This will act as a crucial support level for the March series.

This was followed by the 10,500 strike price, which now holds 22.17 lakh contracts in open interest, and the 11,000 strike price, which has now accumulated 21..83 lakh contracts in open interest.

Put writing was seen at the strike price of 10,900, which added 5.58 lakh contracts, followed by 10,800 strike that added 1.5 lakh contracts and 11,000 strike that added 1.48 lakh contracts.

Put unwinding was seen at the strike price of 10,700 that shed 4.74 lakh contracts, followed by 10,600 strike which shed 2.75 lakh contracts.

FII & DII data

Foreign Institutional Investors (FIIs) bought shares worth Rs 751.92 crore and Domestic Institutional Investors purchased Rs 580.86 crore worth of shares in the Indian equity market on March 5, as per provisional data available on the NSE.

Fund flow picture

Stocks with a high delivery percentage

High delivery percentage suggests investors are accepting delivery of the stock, which means that investors are bullish on it.

124 stocks saw a long buildup

51 stocks saw short covering

A decrease in open interest along with an increase in price mostly indicates short covering.

17 stocks saw a short build-up

An increase in open interest along with a decrease in price mostly indicates a build-up of short positions.

7 stocks saw long unwinding

Bulk Deals on March 05

NSE

CESC Ventures: International New Discovery Fund sold 1,48,126 shares of the company at Rs 516.44 per share.

Bosch: Company announced an extinguishment of equity shares with respect to the buyback of 10,27,100 fully paid-up equity shares of face value of Rs 10 each.

Quick Heal Technologies: Board approved a proposal to buyback up to 63,63,636 equity shares of the company, being 9.02 percent of the total paid up equity, for an aggregate amount not exceeding Rs 175 crore, at a price of Rs 275 per share.

Jubilant Life Sciences: Subsidiary Jubilant Pharma (incorporated under the laws of Singapore) successfully completed the issuance of rated unsecured bonds (to institutional investors outside India. The Notes were issued at par in a principal amount of $200 million and will mature in March, 2024.

Endurance Technologies: Promoter Anurag Jain to sell up to 63,63,637 equity shares (representing 4.52 percent of the paid up equity) on March 6 and March 7 with an option to additionally sell up to 41,89,051 equity shares (representing 2.98 percent of the paid up equity) through Offer for Sale route.